1. Smile Carrier, Inc is considering investing $450,000 in telecommunications equipment that has an estimated life of four years with no residual value. The cash inflows are as shown below:

Year 1	$120,000
2	235,000
3	140,000
4	98,000

The present value of $1:

	10%	11%	12%	13%	14%
1	0.909	0.901	0.893	0.885	0.877
2	0.826	0.812	0.797	0.783	0.769
3	0.751	0.731	0.712	0.693	0.675
4	0.683	0.659	0.636	0.613	0.592
5	0.621	0.593	0.567	0.543	0.519

The IRR of the project would be ________.

Select one:

A.

less than 10%

B.

more than 13%

C.

between 9% and 10%

D.

between 12% and 13%